Introduction to Event Management for Budget - myassignmenthelp

Question: Discuss about theIntroduction to Event Management for Budget Preparation. Answer: Budget preparation for Folk Fest: The following budget has been prepared for Folk Test and it is represented as follows: Particulars Account Codes Amount per unit (in $) Amount (in $) Revenues: Entrance fees R1 45 9,000 Merchandising profits R2 8,500 Government grant R3 6,800 Sponsorship R4 7,300 Total revenues R 45 31,600 Cost of revenue CR 37.50 7,500 Gross profit GR 7.50 24,100 Expenses: Variable costs: Food V1 14 2,800 Liquor V2 12 2,400 Labour V3 7 1,400 Total variable costs V 33 6,600 Fixed costs: Venue F1 1,500 Hospitality F2 2,000 Printing F3 600 Administration and insurance F4 1,200 Advertising F5 1,700 Total fixed cost F 7,000 Total cost CR 13,600 Net profit NR 10,500 Break-even point (in units) 583 Break-even sales 26,250 In order to determine the profit level and break-even, the following assumptions have been made: The total number of guests for Folk Fest is assumed as 200, as the event organiser has invited 250 guests for the event, out of which 200 is expected to be arrived. The entrance fee per guest is estimated as $45, as this is the standard rate for such event in Canada (Getz Page, 2016). For organising this event, three types of variable cost have been considered and these include food, liquor and labour. The labour rate of $7 per hour is the standard labour rate in Canada (Jones, 2014). References: Getz, D., Page, S. J. (2016).Event studies: Theory, research and policy for planned events. Routledge. Jones, M. (2014).Sustainable event management: A practical guide. Routledge.